Bank of Mexico buys 100 tonnes of gold

May 6th, 2011 - 11:12 am ICT by IANS  

Mexico City, May 6 (IANS/EFE) The Bank of Mexico said it has purchased 100 tonnes of gold over the past few months to diversify its reserves.

The gold accounts for about four percent of foreign reserves, or about $5 billion.

The “purchases were made as part of the normal policy of this central bank regarding the investment and diversification of its assets”, the Bank of Mexico said.

Money has been flowing in the past few weeks into gold and silver due to the loose monetary policies being pursued by central banks around the world, analysts said.

Prolonged low interest rates have stoked inflation fears and led to a sharp drop in the value of the dollar.

Mexico’s foreign reserves totaled $125 billion at the end of April.

–IANS/EFE
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